1Kosmos Raises $57 Million In Series B Funding Round

Listen to this article

1Kosmos, a company specializing in blockchain-powered identity verification and passwordless authentication, announced a $57 million Series B funding round. This round, which includes a $10 million line of credit from Bridge Bank, brings the company’s total funding to over $72 million. The investment underscores growing investor confidence in identity-first security solutions amid rising threats from AI-driven impersonation attacks and sophisticated cyber threats like those from groups such as Scattered Spider and state-sponsored actors.

Founded in 2018 and headquartered in Iselin, New Jersey, 1Kosmos focuses on unifying identity proofing, biometric authentication, and behavioral analysis to eliminate passwords and reduce fraud. Its platform leverages live biometrics, verified identities, and phishing-resistant methods to provide deterministic verification, contrasting with traditional probabilistic models that rely on predictions. The company serves both commercial and federal clients, emphasizing user experience, operational efficiency, and fraud prevention. Recent achievements include achieving FedRAMP High authorization and securing a 10-year, $194.5 million blanket purchase agreement with Login.gov through partner Carahsoft. With 111 employees, 1Kosmos has processed billions of verifications and authentications, serving over 75 million users and experiencing triple-digit growth.

Funding History

1Kosmos’ funding journey began with a $15 million Series A round in February 2021, led by Forgepoint Capital, which supported initial product development and market entry. This latest Series B builds on that foundation, marking a significant escalation in capital to fuel expansion. While some sources indicate a potential interim venture round in June 2022 with undisclosed terms, the core progression reflects steady investor interest in the identity verification space, culminating in the current round that more than triples previous equity infusions.

Details of the Series B Round

The $57 million Series B was co-led by Forgepoint Capital and Origami’s Oquirrh Ventures, with participation from notable investors including Craig Abod (Founder and President of Carahsoft), NextEra Energy Ventures, Gula Tech Adventures, and the 1Kosmos management team. A unique aspect of this round is the personal capital investment by founders and team members, signaling strong internal belief in the company’s vision. The structure combines equity and debt, with the $10 million credit line providing flexible liquidity for operations. No post-money valuation was disclosed, but the round’s size suggests a maturing company positioned for rapid scaling in a market projected to grow amid increasing regulatory demands for secure identity management.

Investor Analysis

• Forgepoint Capital: As a repeat investor from the Series A, Forgepoint brings deep cybersecurity expertise, connections to CISOs, and experience in scaling international operations. Their involvement highlights continuity and validation of 1Kosmos’ progress.
• Origami’s Oquirrh Ventures: This firm adds strategic value in high-growth regions like Asia-Pacific and the Middle East, where 1Kosmos anticipates significant revenue increases. Their focus on enterprise solutions aligns with consolidating fragmented identity workflows.
• Other Participants: Craig Abod’s investment leverages his Carahsoft experience in government contracts, while NextEra Energy Ventures emphasizes stopping AI-powered attacks as a board-level priority. Gula Tech Adventures contributes cybersecurity insights, and management participation reinforces alignment.

This investor mix combines domain expertise, geographic reach, and operational synergies, positioning 1Kosmos for partnerships in federal and enterprise sectors.

Recommended: Tips & Tricks For Nintendo Switch 2, Step By Step Guide

Use of Funds and Strategic Priorities

The capital will be allocated evenly between go-to-market activities and research and development. Key initiatives include:

• Product Innovation: Enhancing AI-driven biometrics, behavioral analysis, and decentralized identity architecture to combat fraud more effectively.
• Global Expansion: Scaling direct and channel sales in North America, EMEA, and APAC, with plans to open offices in markets like Saudi Arabia.
• Technology Integrations: Deepening compatibility with IAM, CIAM, PAM, and zero-trust platforms, while building multi-cloud resilience with failover across AWS, Google Cloud, and Azure.
• Infrastructure Enhancements: Developing secure, isolated systems for federal clients and AI agents for anomaly detection.

These efforts aim to address impersonation threats, streamline workflows, and accelerate time-to-value for clients, ultimately replacing fragmented tools with a unified platform.

Market Context and Implications

The identity verification market is evolving rapidly, driven by AI advancements that both enable sophisticated attacks and offer defensive tools. 1Kosmos differentiates through its deterministic approach, using cryptographic proofs and contextual signals to ensure user authenticity, unlike probabilistic methods vulnerable to deepfakes. Competitors in biometric and passwordless spaces face similar challenges, but 1Kosmos’ focus on multi-cloud resiliency and federal compliance gives it an edge in regulated industries.

This funding positions 1Kosmos to capitalize on boardroom concerns over identity breaches, potentially expanding into applications like tax filing or broader government services. By developing an identity scoring system akin to credit scores, the company could enable organizations to assess risk dynamically, fostering wider adoption. Overall, the round signals maturation in the sector, with implications for reduced fraud, improved efficiency, and stronger defenses against emerging threats.

With this infusion, 1Kosmos is poised for accelerated growth, targeting triple-digit increases and deeper market penetration. The emphasis on AI and global reach could lead to strategic acquisitions or partnerships, solidifying its role in the identity-first security landscape. As impersonation attacks intensify, the company’s scalable solutions offer a proactive path forward for enterprises and governments alike.

Please email us your feedback and news tips at hello(at)techcompanynews.com